FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
FxPro information and reviews
OctaFX information and reviews

Truth About Regulated Forex Brokers

28 January 2020

If you are in the trading sector or new to Forex you may well be confused with all the different types of regulation out there.

Why is regulation a good thing?

Put simply there is a drive to help traders minimize their losses by reducing the leverage (amount you can gamble effectively).

So the consensus is that as so many traders, especially beginners, lose, it is a good thing to help them minimise exposure to leverage and ultimately the amount of money you could lose.

So where is the problem (how is it abused)?

As there are now so many jurisdictions and choices to be regulated from, CySec, FCA, BaFin to name a few.

Many brokers become regulated in various areas so they can say they are regulated by various entities and therefore add an air of credibility so they can affiliate themselves with the regulatory bodies on websites and promo material.

Famous regulators

Some of the famous regulators such as CySec, BaFin and the FCA require brokers to have very large compensatory funds and stop brokers from offering high leverage to their clients on their tradeable assets.

The problem is that as a new client, you are only covered by the entity (jurisdiction) that you signed up to.

The reality of broker regulation (how so many are misguided)

The reality is that brokers with many different regulatory entities are very often signing people up into one of their less regulated jurisdictions leaving the new client/trader exposed to lack of investor compensation and also more tricky and complex sign up processes that can leave the client exposed to undue risk and lack of transparency.

Do you need to sign up to highly regulated Forex brokers?

To be honest, this really is up to you. If you seek leverage and protection, then you will not find the leverage that you seek from the well-known regulatory options. This is because they try to protect clients from heavy losses and usually put a stop to offers and giveaways used to lure clients to open an account.

That said, if you are happy to accept a sweetener or gift to start your trading experience and open to high leverage but still want some protection, you do have choices…

A safe broker with flexibility?

4xCube is an example of what is termed an offshore (though not correctly termed) broker. Their trading license is from the Cook Islands and offers €20,000 investor protection fund from the Financial Commission, meaning your money is protected to a sizeable amount.

They also work hard to push very fast executions trades and ensure that their technology is of the highest standard benefiting the traders that work with 4xcube.

Why is technology important?

At 4xCube you get your very own free VPS, Full STP and truly outstanding trading conditions due to continual and significant investment in the best trading technology available.

Very flexible IB plans

4xCube works with a wide range of introducing brokers and truly offers very good options in this situation.




Libertex launches new account type for committed investors
Libertex launches new account type for committed investors

The number of new entrants into the equities market is soaring, but rather than aiming for short-term results, the new breed of market players is more interested in long term, low-risk capital growth...

29 Nov 2021

Floating leverage for Swap Free accounts
Floating leverage for Swap Free accounts

We continue to improve your trading experience and make our services more convenient for you. Starting November 29, we are implementing the floating...

29 Nov 2021

How to Make the Most of Black Friday Sales Without Going Shopping
How to Make the Most of Black Friday Sales Without Going Shopping

Black Friday is like an extreme sport, with shoppers competing against one another to get hold of the best deals and price savings. Shopping on Black Friday is not relaxing...

26 Nov 2021

Trading Education: Boost Your Skills in FBS Trader
Trading Education: Boost Your Skills in FBS Trader

​FBS broker keeps creating perfect trading conditions and developing its products. In the recent update, an all-in-one trading platform, FBS Trader, launched...

25 Nov 2021

Shiba Inu, Dogecoin, Cardano, and More Crypto in FBS
Shiba Inu, Dogecoin, Cardano, and More Crypto in FBS

The international trading broker FBS keeps up with the latest trends and adds new crypto assets to its products. Now Shiba Inu, Dogecoin, Cardano, and ten more crypto assets...

24 Nov 2021

The reasons to open a demo account with FxGlory
The reasons to open a demo account with FxGlory

If you start trading in the Forex market without enough knowledge and practice, you will lose your capital undoubtedly. Consequently, financial losses will cause mental losses...

19 Nov 2021

Editors' Picks

HotForex information and reviews
XM information and reviews
FXCM information and reviews
AvaTrade information and reviews
LegacyFX information and reviews
FP Markets information and reviews
FP Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.